The upcoming Budget is likely to cut Child Benefit for higher earners next year, it emerged last night. 

The benefit payment is likely to be paid at three different levels next year — one for low income families, one for middle income and one for high income. 

At the moment, the same rate of Child Benefit is paid to every family, regardless of their income. 

The Government signalled last night that Child Benefit will be substantially cut for people on higher incomes in the forthcoming Budget. 

Social Welfare Minister Mary Hanafin said Child Benefit should continue to be paid to all mothers, continuing the principle of a ‘universal payment’. 

But the minister said it could end up being paid in three different bands — one level for low income families, one for middle income and one for high. 

Ms Hanafin said it would be extremely difficult to tax or means-test Child Benefit for every family in the country. 

She gave the example of a cohabiting couple who are not jointly assessed for tax purposes. 

However, the minister did say her department was asking the Revenue Commissioners to identify those on high incomes. 

“We know the social welfare people. We know the people on low income because they are getting Family Income Supplement. We will be turning to Revenue to say: Can you identify the very highest income earners?” she said. 

Child Benefit is costing €2.5bn a year and Finance Minister Brian Lenihan said this year the payment would be cut in some form.